DFCC Bank Re-launches Vardhana Junior Children’s Savings Account
DFCC Bank PLC is a fully fledged commercial bank with a rich history of over 62 years. In 2013, the then fully owned subsidiary of DFCC Bank- Vardhana was one of the first banks to introduce junior products. Vardhana Junior is an innovative product and is a well-recognised product that caters to the younger generation. This product was recently re-launched to provide a new range of gifts and benefits. Sunday Times spoke with Mr Lakshman Silva, current Deputy Chief Executive Officer of DFCC Bank PLC regarding the newly launched Junior savings account. The following is an excerpt of the interview.
Why did the bank decide to re-launch Vardhana Junior?
After evaluating customer needs, expectations and the customer’s life cycle, we decided to revamp the Vardhana Junior product with a new range of gift propositions, to attract the young generation and encourage them to get into the habit of saving.
How does the gift proposition for the Vardhana Junior savings product work?
This is a tiered product, so what it means is that, when the savings account’s deposits are built up, the child will be entitled to higher value gifts and the gifts we offer are attractive and need based.
The majority of things are done digitally these days and bearing this in mind, we are offering gifts such as laptops and tablet PC’s, which will help them to experience the digital world. We want to encourage the use of technology which will be useful to them to gain new knowledge.
The product also awards a certain amount of money to grade 5 students. Can you elaborate on that?
In addition to the gifts, we have linked the Vardhana Junior product with the grade 5 examinations, bringing in an initiative to encourage students to excel in their studies. Should a student holding a Vardhana Junior account, score marks above 150 at this year’s grade 5 examination, the Bank will credit Rs. 150 to the child’s account for each mark scored above 150. Further, depending on the marks that they have achieved, the bank will deposit additional funds into their accounts.
In order to be eligible, the students should be accountholders of the Bank and should deposit an additional amount of Rs. 5,000 into the account.
We want to reach out and engage with the younger generation and inculcate in them the good habit of saving. Furthermore, we look at introducing products that will add value and help individuals and businesses to grow.
The bank is also planning to offer several additional services to the students; what are they?
In order to deliver maximum benefits to account holders and to encourage frequent savings, DFCC Bank has also introduced a new scheme to encourage parents and minors to save every year upon reaching the Rs. 50,000 tier. Accordingly, those who reach the Rs. 50,000 tier and have deposited a minimum of Rs. 10,000 for the year will be awarded a stationary pack, school uniform or pair of shoes, depending on the need, at the beginning of the year.
Why has DFCC initiated such schemes?
We want to reach out and engage with the younger generation and inculcate in them the good habit of saving. Furthermore, we look at introducing products that will add value and help individuals and businesses to grow.
How is DFCC Bank encouraging children to interact with the bank?
Since the amalgamation, DFCC Bank has introduced a new proposition focusing on families and our products and programme’s are designed around that thinking. We are one of the few banks that has looked at the family concept. We want the entire family to do banking together and want to make DFCC the Bank for the family.
As a result, we look at offering benefits not just to the account holder, but the whole family. We see that this has encouraged families to come and Bank with us. Generally, in the financial sector, it is the income-earner who comes to the bank.
So, we are looking at ways to provide some opportunities for children to interact with banking staff while parents are engaged in banking transactions. As a developing country, Sri Lanka requires more people to save. Savings habits have to be cultivated within the country, and the new generation has to be exposed to saving. We feel that getting them involved with banking will definitely have benefits to the entire country.
What are some of the things that have contributed to the success of the bank?
Our staff has played a key role in the success of the Bank and they consist of mostly millennials. This has brought in innovation, energy, enthusiasm, and different ideas and this has helped us to cater to the changing needs of our customers.
You have been with the bank for three decades and will soon be the CEO. Can you tell us about your journey with DFCC so far?
Very few young employees remain in one organisation. I have been in this bank for thirty plus years. I had the fortune to work with about seven chairmen and four CEOs. So it’s a tremendous experience. I was also fortunate to witness the transformation the organisation has gone through. From originally being a dedicated development bank, we have gone on to becoming a fullyfledged commercial bank, having invested in one of the largest commercial banks in Sri Lanka in 2003.
We moved into setting up and bringing the commercial bank from scratch to a very competitive bank within a period of 12 years and then amalgamated two entities in 2015. This is the first organisation in Sri Lanka where two financial institutions came together.
Over the years, we have also ventured into new areas and the DFCC Group consists of two subsidiaries an associate company and a joint venture.
I have also had the opportunity to see customers who started small grow their businesses with DFCC. I am a great follower of successful entrepreneurs, and even if they are not our clients anymore, they are in-touch with us and wherever they want our guidance or advice, we provide it.
What message do you have to give to the younger generations?
My idea is to give confidence to the younger generation that DFCC Bank is committed to driving growth and inclusion in the country. Furthermore, I would like to say that if you focus, dedicate, and commit yourself towards your goals, you can reach the highest position.